ICEACE - Matlab

ICEACE (Financial instability, credit rationing and business cycles in an agent-based model: the case of Iceland) is funded by The Icelandic Research Fund 2011.

The project has a twofold goal. From a scientific perspective, it aims to understand the endogenous sources of instability in the financial system and to devise the relationship between credit supply, assets bubble and macroeconomic activity. In order to achieve this goal, the project foresees the development of an agent-based model and a simulator of a credit network economy. From a more practical and societal perspective, the second objective of the project is the calibration and validation of the simulator on the Icelandic economy so to make it an innovative and powerful computational facility for the assessment of economic scenarios and the design of policy measures. Particularly for macroeconomic policy and systemic risk assessment. The project aims to fully adopt the agent-based approach in order to overcome the limitations that usually affect the large scale macro-econometric models as well as the dynamic stochastic general equilibrium models, which are now employed at policy institutions.